On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds to be repaid in the amount of P 1,000,000 each year. Interest is payable annually on Dec. 31. The bonds were issued to yield 10% a year. The bonds proceeds were P 4,757,000 based on the present value at Jan. 1, 2020 of five annual payments. The entity amortized the bond discount by the interest method. What is the carrying amount of the bonds payable on Dec. 31, 2022? a. P 3,832,700 b. P 2,962,430 c. P 1,945,567 d. P 1,081,17

Q: CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal…

A: As per effective interest method, the amount of interest expense correlates with the carrying value…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: A liability account called "Bonds Payable" shows up on a business's balance sheet. It shows the…

Q: On January 1, 2022, Waterway Corporation issued $1,950,000 face value, 7%, 10-year bonds at…

A: The bonds payable are reported as long term liabilities in the balance sheet. The interest payable…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: On 3/1/2020, Taft Corporation issues 17-year bonds, dated 1/1/2020, with a par value of $300,000.…

A: Bonds payable is the liability recorded when the company generates cash by issuing the bonds.…

Q: On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1,…

A: Interest method of amortization: This is a method useful for bonds which are sold at a discount. The…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: Presented below is a partial amortization table: Semi Annual Interest Period Jan 1, 2026 July 1,…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: solution : given: face vale            =4000000 interest payable            = semiannually interest…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: Bonds are bearer financial instruments with fixed interest that businesses issue to raise capital.…

Q: n January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $900,000 at…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…

A: Answer - Working Note : The computation of the interest expense is shown below:   The bond interest…

Q: The 10% bonds payable of Coronado Industries had a net carrying amount of $3000000 on December 31,…

A: Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: On January 1, 2020, Cee Company issued bonds with the face amount of P 10,000,000, 8% serial bonds…

A: Carrying amount of bonds payable on Dec. 31, 2021 will be Carrying value of bonds payable on January…

Q: Sandhill Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,122,360…

A: When the bonds are issued at premium, the amortisation premium needs to be adjusted against the…

Q: On Dec. 31, 2020, ABC Corp issued 4-year, 7% bonds with $2,000,000 as par value. ABC Corp. received…

A: Lets understand the basics. When bond is issued at more than its par value then it is known as…

Q: The 10% bonds payable of Tulip Company had a net carrying amount of $2,850,000 on December 31, 2021.…

A: Retirement of the bonds : Retiring a bond is the process of paying off a debt obligation with funds…

Q: On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000.…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On January 1, 2025, Blue Company issued S1, 100, 000 face value, 7 %, 10-year bonds at $1, 180,961.…

A: Bonds payable are long-term liabilities that are issued for a fixed term with a fixed periodic…

Q: n Jan 1, 2020, Liezel Company issued 10% bonds in the face amount of P5,000,000 that mature on Jan…

A: Solution Given Face value 5000000 Issue price 4580000 Coupon rate 10%…

Q: At the beginning of 2020 Max company issued 10% bonds with a face value of 900,000. These bonds…

A: Coupon rate = 10%/2 = 5% Market rate = 12%/2 = 6% Number of periods = 5*2 =10 Interest paid = Face…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: On July 1, 2023, DDJ Limited issued bonds with a face value of $900,000 due in 20 years, paying…

A: Bonds are issued below the face value than this is dicount and this is due to the higher interest in…

Q: Kingbird corporation issued  $460,000,8%, 20 year bonds on January  1,2022 for $418,008 this price…

A: Journal entry refers to the classifying and recording of daily transactions initially into books of…

Q: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Interest payment = Face value of bonds x rate of interest x time = $100 million x 6% = $6 million

Q: Unrealized holding gain/(loss) in OCI for year 2014 2. Interest expense for the year ended December…

A: Unrealized holding gain/(loss) is the term used to describe a change in an investment's value that…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: The discount or premium on an issued bond is amortized to find the carrying value of the bond…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $1,000,000 and a stated…

A: Bond- Bonds are debt securities issued by corporations, governments, or other organizations and sold…

Q: On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: The provided information are: Face value = P1,200,000 Rate of interest (r) = 8% = 0.08 Yield = 10% =…

Q: On January 1, 2025, Entity D issued $1,000,000 of 7%, 5-year bonds at 98. The bonds pay interest…

A: Bonds Payable - Bonds Payable is a amount borrowed to be repayable at specific interval. It carries…

Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: P642,007.30 in b

A: Introduction Present value of bond:-

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: compute the present value of interest and the principle amount

A: Present value is the sum of present value of future cashflow discounted with the required rate of…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.